Phase Forward reports “strong finish to a highly successful year”

Integrated data-management specialist Phase Forward scooped up 55 new direct customers for its electronic data capture (EDC) and safety tracking solutions last year, as revenues grew by 26% over 2006 to US$134.3 million.

The US company’s operating income was US$13.0 million for 2007, up by 39.6% and giving net income of US$29.2 million – more than double the US$12.3 million recorded in 2006. Diluted earnings per share were US$0.72 compared with US$0.35 in the previous year.

The main revenue contributor was Phase Forward’s InForm EDC solution. Licensing, application hosting and other InForm-related revenues jumped by 34.0% to US$96.9 million, generating 72.1% of the group total. Bookings for 2007 were 43% higher at US$195.8 million and the order backlog as of 31 December 2007 was US$279 million against US$217 million one year earlier.

As chief executive officer and president Bob Weiler noted, the company benefited from “a strong finish to a highly successful year”, with fourth-quarter revenues 25.0% ahead at US$37.8 million. Operating income for the quarter, however, dipped 13.5% to US2.48 million as operating expenses rose by 18.7%.

Phase Forward is expecting revenues of US$165-US$169 million this year. “Our strong business momentum and solid industry fundamentals make us optimistic about our outlook heading into 2008,” Weiler said.